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Assets Cash Accounts receivable Equipment Less: Accumulated depreciation Total Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ 2023 December 31 $54,000 2023 90,000 27,300 (11,300) $160,000 $20,000 100,000 40,000 $160,000 Net income of $32,800 was reported and dividends of $12,800 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11.800 and accumulated depreciation of $7,000) was sold for $7,800. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, eg. 52.75. Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg. (15,0001) 11 2022 % $6,200 88,800 21,100 (10,000) $106,100 $10,000 76,100 20,000 $106,100 2022 11 %

Assets Cash Accounts receivable Equipment Less: Accumulated depreciation Total Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ 2023 December 31 $54,000 2023 90,000 27,300 (11,300) $160,000 $20,000 100,000 40,000 $160,000 Net income of $32,800 was reported and dividends of $12,800 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11.800 and accumulated depreciation of $7,000) was sold for $7,800. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, eg. 52.75. Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg. (15,0001) 11 2022 % $6,200 88,800 21,100 (10,000) $106,100 $10,000 76,100 20,000 $106,100 2022 11 %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assets Cash Accounts receivable. Equipment Less: Accumulated depreciation Total Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ December 31 2023 $54,000 90,000 27,300 (11,300) $160,000 2023 $20,000 100,000 40,000 $160,000 Net income of $32,800 was reported and dividends of $12,800 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11.800 and accumulated depreciation of $7,000) was sold for $7.800. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, eg. 52.75. Show amounts that decrease cash flow with either a-sign eg-15,000 or in parenthesis eg. (15,000)) 1 2022 $6,200 88,800 % 21,100 (10,000) $106,100 $10,000 76,100 20,000 $106,100 2022 :1 %
Transcribed Image Text:Assets Cash Accounts receivable. Equipment Less: Accumulated depreciation Total Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ December 31 2023 $54,000 90,000 27,300 (11,300) $160,000 2023 $20,000 100,000 40,000 $160,000 Net income of $32,800 was reported and dividends of $12,800 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11.800 and accumulated depreciation of $7,000) was sold for $7.800. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, eg. 52.75. Show amounts that decrease cash flow with either a-sign eg-15,000 or in parenthesis eg. (15,000)) 1 2022 $6,200 88,800 % 21,100 (10,000) $106,100 $10,000 76,100 20,000 $106,100 2022 :1 %
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